During the first week of an accounting course, Student A expressed the opin¬

ion that a great deal of time could be saved if a business would record trans¬

actions directly in ledger accounts rather than entering transactions first in a journal and then posting the debit and credit amounts from the journal to the ledger. Student B agreed with this view but added that such a system should not be called a double-entry system since each transaction would be entered only once. Student C disagreed with both A and B, arguing that the use of a journal and a ledger was more efficient than entering transactions directly in ledger accounts. Furthermore, Student C argued that the mean¬

ing of a double-entry system did not refer to the practice of maintaining both a journal and ledger. Evaluate the statements made by all three students. LO5